ECB on Tap
Tomorrow (10/2) the ECB will conclude its monetary policy meeting, release an official statement and follow up with a press conference with bank prez, Mario Draghi. Let’s take a look at the EUR/USD and EUR/GBP ahead of this key event risk.
The EUR/USD is consolidating between 1.2571 and 1.2640. If price can break and hold above 1.27 after the ECB, we might be building a price bottom for a bullish correction. A break above 1.2715 would be an even stronger sign of bullish correction. Otherwise, there is still downside risk if price holds below 1.27. EUR/GBP is in a consolidation range between 0.7766 and 0.7785. Now if price can hold above 0.7830 after the ECB event, there could be a price bottom and a bullish correction. Otherwise, if price holds or returns quickly below 0.78, there is downside risk back to 0.7765. 0.7764 is the 2012-low, and a break below that opens up a 4 year low, and Oct. 2010 low in the 0.7693-0.77 area
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